Under the agreement, Fortune will pay Sonesta $30 million at the closing, which is to occur within the next 90 days, and $30 million on discharge of an existing mortgage loan on the hotel, which Fortune will arrange. Sonesta will contribute the resort site to the partnership, with a value of $60 million and receive a 50% interest in the redeveloped property.

Sonesta will continue to operate the property, which opened in 1969, through August 2006. At that time, Peter J. Sonnabend, CEO and vice chairman of Sonesta, tells GlobeSt.com, "Fortune will tear down the existing building and construct a new Sonesta." The new property is planned to include up to 300 luxury hotel condo units, restaurants, meeting/function space, a spa and other resort amenities. Fortune will handle the financing, construction and marketing and condo sales, Sonnabend says, and, following construction, Sonesta will operate all but the guest rooms.

"Frankly, we were a little staggered at the value Fortune placed on what is basically the land," Sonnabend tells GlobeSt.com. "We look at the value of hotels differently from the way a developer looks at the value of land. But, we're very aware of Edgardo Defortuna's work as a developer. When Fortune approached us, we felt this was an opportunity we had an obligation to explore."

Defortuna, president and CEO of Fortune, was out of the country at press time, however, Andrea Greenberg, VP of marketing, confirmed the details supplied by Sonnabend. Asked what the condo rooms would sell for, she says, "that's premature. I can only say it's an oceanfront project and everything Fortune is involved in is high end. The location--10.5 acres on the ocean--probably makes this the hottest deal in South Florida to date. We're getting what we're paying for."

Fortune has much experience in South Florida condo development, including hotel condos. Among the hospitality projects in which it is involved is Le Meridien Beach Resort & Spa in Sunny Isles Beach.